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During May, Blast sold 650 portable CD players for $50 each and provided a one-year warranty with each unit. Each CD player cost Blast $25
During May, Blast sold 650 portable CD players for $50 each and provided a one-year warranty with each unit. Each CD player cost Blast $25 to produce. If 10% of the goods sold typically need to be replaced over the warranty period, for what amount should Blast debit Product Warranty Expense in May?
a.$3,250
b.$1,625
c.$1,300
d.$650
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